Thailand reduces tax on E85 vehicles

Thailand has approved a 3% cut in the excise tax on E85-compatible vehicles. Energy Minister Wannarat Charnnukul said the rate will be lowered to 22%-32%, from the current 25%-35%. Wannarat said the cabinet also slashed an import tariff by 20% to 60% for 2,000 units of imported E85-powered vehicles a year and exempted the import tariff for an additional seven auto part items for cars that run on E85 fuel. The new rates are expected to become effective by 1 January. The move is aimed at promoting the use of E85 petrol, a blend of 85% ethanol and 15% petrol. The government aims to raise the share of renewable energy to 20% of overall fuel use by 2022, from the current 7%. (November 26, 2010)